European Shares May Struggle For Direction As Rate Worries Persist

European stocks may struggle for direction on Thursday as investors await a slew of U.S. economic data later in day, including reports on weekly jobless claims, retail sales and industrial production, for additional clues about the outlook for interest rates.

Close home, Euro zone trade data, French inflation figures and German wholesale price data are due later in the session.

The Bank of England has delayed its interest-rate decision until next week due to the death of Queen Elizabeth II.

Asian markets traded mixed, with China’s Shanghai Composite index falling over 1 percent, amid concerns over a deepening property slump in the country.

The People’s Bank of China today kept its key policy rate unchanged as expected after a cut in August.

The dollar held near recent peaks and the U.S. 2-year Treasury note briefly rose to 3.8 percent again, keeping gold prices under pressure.

Oil prices were little changed as investors weighed demand concerns against potential supply disruptions.

The downside, if any, remained capped by speculation the Biden administration may consider refilling U.S. oil reserves at $80 a barrel.

U.S. stocks eked out modest gains overnight after a market rout the previous day on Fed worries.

A measure of producer prices fell for a second straight month in August, helping stocks recover from their worst sell-off in more than two years.

The Dow finished marginally higher, the S&P 500 rose 0.3 percent and the tech-heavy Nasdaq Composite added 0.7 percent.

European stocks fell for a second straight session on Wednesday amid lingering uncertainty surrounding the outlook for inflation and rate hikes.

The pan European Stoxx 600 shed 0.9 percent. The German DAX lost 1.2 percent, France’s CAC 40 index dipped 0.4 percent and the U.K.’s FTSE 100 gave up 1.5 percent.

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